Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1887-12-12
THE BANK CT THE FUTURE
TELLER AND ADAMS HAVE IDEAS ON
THIS LIVE ISSUE.

How the Senate Committees have been
CONFERENCE.-The Latest Guess in Regard
to the House-Comparative Prices of &C.
observation-disclosures Stag Dinner Party
Irish Leaders Reception.
WASHINGTON CITY Dec. l2.-Senator Tel
Ter, in talk with United Press representa-.
tive on the various propositions looking
towards a new basis for national bank circu-
lation, said he would favor making the issu-
ance of bank notes optional with the banks
themselves, and provide for the deposit of a
nominal sum with the treasury, for which an
ordinary certificate of deposit would be issued,
drawing no interest, but intended only to
keep up the federal connection with the bank
and thereby giving authority for govern
ment supervision. A bond drawing no in
terest, and running say fifty years. could be
issued for national bank security, bnt the de-
post of cash would do as well, while the
matter of circulation was not a necessity or
convenience, neither was it a source of bene-
fit He said:
"lf there ever was anv necessity for bank
notes it has disappeared. We have the best
banking system in the world, but it was not
made good by the system Of circulation.
| Government supervision and federal laws
| generally are what made and perfected the
| system A deposit OF s., 900, and the issu-
ance Of no circulation will give the same Sc
| curity the present system affords bank. 1t
would also maintain the present system of
| circulation to the extent of reducing the
| minimum of deposit with the treasurer
| to the lowest possible figure, but leave it
| SO bonds or cash could be deposited.
If cash, a certificate would be issued by
the treasury, and no bank circulation would
issue Ii bonds are deposited, the limit
might be raised at the option of the bank,
and circulation issued in proportion. do
not think banks should be confiued to the de-
| post of bonds TO secure circulation, even if
the minimum is reduced. and do not think
they ought to be required to take out circu-
lating notes, since the end sought can be SC
much easier attained
Representative Adams, of Chicago, viii
introduce bill in the house which provides
that national banks hereafter organized shall
not be required to deposit with the treasurer
bonds in excess of s., 900 in par value, as Sc
curity for their circulating notes. but shall
deposit not less than the amount of bond
mentioned, and that the amount of such cir
cuating notes shall not in any case exceet
80 per cent. of the par value of the bond
deposited, that any national bank now o.
hereafter organized may reduce the amour
OF bonds on deposit as security for its circu
latiug notes to any amount no
less than $1,000 by reducing it
circulation by the deposit of Lawful
money in the manner and subject to the con
ditions and restrictions now provided b.
law; provided, that no bank having capita
of more than SI5O,00O shall reduce the
amount of bonds on deposit as security TO
its circulating notes to an amount less thai
SO, by Withdrawing i'll any one yea
bonds in excess of $40, 900 of par value; an
no bank having capital OF $780, 900 or less
shall reduce the amount of bonds on deposi
as security for the circulating notes TO a
amount less than oue-fourth of its capita
stock by withdrawing in any one year bond
in excess of s., 900